Synopsis: A major defence contract marks a historic first for Indian naval power generation, as a leading forging and engineering company secures a ₹425 crore multi-year government order to supply gas turbine generators to the Indian Navy.
India’s push for self-reliance in defence manufacturing has received a significant boost, with a Pune-based engineering giant winning a landmark contract to supply naval power systems for the first time indigenously. The deal, running over five years, underlines the growing role of private sector companies in equipping the Indian armed forces with cutting-edge technology built at home.
Shares of Bharat Forge Limited, with a market capitalization of Rs. 97,597 crore, are trading at a price of Rs.2047.8 i.e. 0.25% up from its previous closing price of Rs.2,042.55. It is trading at a P/E ratio of 88.79.
₹425 Crore Naval Deal: A Historic First
Bharat Forge Limited (BFL) signed a ₹425 crore contract with the Ministry of Defence on June 19, 2026, for the supply of Gas Turbine Generators (GTGs) to the Indian Navy. The GTGs will be used for onboard power generation on Kolkata-class ships and will be executed over a period of five years.
Rated at 1.25 MW, the new units will replace lower-capacity generators currently in service aboard these warships. The contract was awarded under the Buy (Indian) category of the Defence Acquisition Procedure 2020 (DAP-2020), making it a fully indigenous programme with strong policy backing.
Most significantly, this contract marks BFL’s first entry into the marine gas turbine business – and will result in the first indigenous gas turbine-based power plant to operate on Indian Naval ships. This is a milestone not just for the company but for India’s broader ambition of building sovereign defence capabilities at sea.
Building Capability, Ensuring Sovereignty
To fulfil this contract, BFL will set up a dedicated Integration and Test facility for GTGs. Beyond supply, the company has also indicated it will participate in design and development programmes for larger power plants and propulsion gas turbines – opening a path towards deeper naval systems work in the future.
The manufacturing capabilities being built for this programme will also serve the wider needs of the Indian armed forces. BFL noted that local production will ensure complete sovereignty over the maintenance and overhaul of gas turbines and GTGs, reducing dependence on foreign suppliers for critical naval systems.
A Strong Defence Order Book Backing Growth
The GTG contract adds to an already strong pipeline of defence business at BFL. The company secured new orders worth Rs 4,814 crore in FY26, of which Rs 2,816 crore came from defence alone. The defence order book stood at Rs 10,961 crore as of FY26, providing strong revenue visibility over the coming years.
Order wins also reflected a resurgence across other businesses, including aerospace, where BFL onboarded new customers across Engine, Structural, and Landing Gear components.
Financials Show Steady Momentum
BFL’s consolidated financials reflect a business in steady growth mode. For the quarter ended March 2026, the company reported revenue of Rs 4,528 crore, up 17.5% from Rs 3,853 crore in the same quarter last year. Net profit stood at Rs 233 crore against Rs 283 crore in March 2025. Operating profit grew 14.4% to Rs 777 crore from Rs 679 crore, with margins steady at 17%-18%.
For the full year ended March 2026, consolidated revenue came in at Rs 16,812 crore, up from Rs 15,123 crore in FY25. Net profit for FY26 stood at Rs 1,089 crore against Rs 913 crore in FY25, reflecting a meaningful improvement year-on-year. EPS for FY26 stood at Rs 22.58.
About the Company
Bharat Forge Limited is a Pune-based Indian multinational and a global leader in safety-critical components for automotive, power, oil and gas, rail, marine, defence, and aerospace sectors. BFL operates across five countries and offers full-service supply capability from concept to validation.
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